Roche Case Study 3

ALTERNATIVE STRATEGIES

Once a company has identified the various strategic possibilities, it has to make a selection from among these alternatives. This would typically be based upon its growth objectives, attitude towards risk, the present nature of business and the technology in use, resources at its command, its own internal strengths and weakness, Government policy etc. (Kumar, 2013)

For a company which desires immediate growth and quick returns, mergers and take–overs are a great option as it eliminates the necessity of starting from scratch. Establishing a joint venture, especially in the international arena, is a low risk alternative. For Roche, the company already stands as a world leader in several areas. They are most likely not going to gain market share in markets that they already dominate. These successful proven markets need to be maintained and kept as the foundations for the Roche business while new options for additional products and markets are introduced. Roche will need to leverage the current product offering in an effort to help grow interest in the new product lines until the new products and or markets can stand on their own. This should be done through Concentric Diversification.

According to Rijamampianina, Abratt, & February (2003), when a firm diversifies into some business which is related with its present business in terms of marketing, technology, or both, it is called concentric diversification.

In marketing-related concentric diversification, the new product is sold through the existing distribution system. For instance, a bank may start providing mutual fund services to its customers. Roche has the ability as a world leader in pharmaceuticals, to be able to market products alongside one another in order to help patients with multiple needs. Customers can trust that the Products are safe when coming from the same company which knows the chemical makeup and what it can and cannot be taken with. Roche also has a...